RPM International Inc (RPM)
Return on assets (ROA)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 588,397 | 478,691 | 491,481 | 502,643 | 304,385 |
| Total assets | US$ in thousands | 6,586,540 | 6,782,000 | 6,707,710 | 6,252,970 | 5,630,950 |
| ROA | 8.93% | 7.06% | 7.33% | 8.04% | 5.41% |
May 31, 2024 calculation
ROA = Net income ÷ Total assets
= $588,397K ÷ $6,586,540K
= 8.93%
Based on the data provided for RPM International Inc, the return on assets (ROA) has shown fluctuation over the past five years. The ROA for the most recent year ending on May 31, 2024, was 8.93%, representing an improvement compared to the previous year's ROA of 7.06%. This indicates that the company generated approximately 8.93 cents in net income for every dollar of assets it holds.
The trend over the five-year period shows some variability, with the ROA peaking at 8.04% in May 2021 and hitting a low of 5.41% in May 2020. Overall, the ROA has shown an upward trajectory, with a general improvement in the company's ability to generate profits from its assets over the years.
A higher ROA signifies greater efficiency in asset utilization and profitability. However, it is important to assess the components that drive changes in ROA, such as net income and total assets, to gain a deeper understanding of the company's operational performance and financial health.
Peer comparison
May 31, 2024